Short Term Rental Riches

103. Lease Arbitrage Deals Just Got Riskier

Nov 2, 2021
Delve into the complexities of lease arbitrage in the short-term rental market. Discover the rising risks, like landlord negligence and fluctuating property values. Explore how city laws can suddenly impact profitability and the potential consequences of rising rents. The discussion also highlights the long-term financial advantages of owning property compared to lease arbitrage. Lastly, get details on an upcoming virtual event designed to equip listeners with valuable insights for successful short-term rental operations!
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ANECDOTE

Tim's 10-Apartment Lease Arbitrage Experience

  • Tim Hubbard signed a lease arbitrage deal for 10 apartments that's currently working well despite some issues.
  • He contrasts his investing approach with a 100-property arbitrage specialist featured on a popular YouTube channel.
ADVICE

Handle Landlord Maintenance Risks

  • Ensure your lease has clauses covering landlord maintenance responsibilities to avoid costly delays.
  • Consider covering small repairs yourself under a threshold to keep your rental guest experience positive.
INSIGHT

Landlords Leasing To Refinance Risks

  • Landlords might lease properties to quickly refinance and pull cash, then neglect maintenance or tenant needs.
  • This strategy can cause problems for short-term rental operators leasing from them.
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